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Volume 30, No. 2
Fall Issue 2011
The California Department of Consumer Affairs (DCA) has unveiled a new online
self-help tool that offers consumers a wealth of information about almost any
consumer topic.
The Consumer Wiki (based on the open-source software used in the popular
Wikipedia) allows users to look up answers to their questions or find the places to get
the answers they need.
“This powerful new tool is the exact same tool used by our call center staff when
assisting consumers,” said DCA Acting Director Brian Stiger. “In developing it, we
decided to put it out there as a self-help site for consumers to use, too.”
The Consumer Wiki was created to replace an older database of information used by
phone agents in DCA’s Consumer Information Center, who handle more than one
million consumer calls every year.
Consumers will find valuable information in this directory on thousands of subjects,
including contact names and phone numbers for further assistance. Topics range from
those consumer issues over which DCA has jurisdiction, such as auto repair and
contractors, to other areas such as landlord-tenant issues, buying or selling a home,
and financial investments. It includes broad consumer topics as well as an A-to-Z
listing of consumer issues.
“We designed this to be easy to update,” said Stiger. “If a consumer finds another
resource they think we should include, they can e-mail it to us, we’ll evaluate it and,
if appropriate, add it to the site. We want to make this as complete a resource as
possible.”
DCA’s Consumer Wiki includes street addresses, e-mail addresses, and phone
numbers to government agencies and nonprofit organizations; links to websites
consumers are likely to want to visit; and a list of DCA publications.
www.consumerwiki.dca.ca.gov
CONSUMER WIKI
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AARP has created a succinct booklet on how the
new health care law affects you call The New Health
Care Law and You. The 8-page publication is
available at
http://assets.aarp.org/www.aarp.org_/articles/
health/207993_hcr_ed_booklet_6-8-10.pdf
We will be providing additional information about
health care reform in future issues of Today’s
Consumer.
New CPSC
Searchable Database
The Consumer Product Safety Commission has
unveiled its new searchable database,
www.saferproducts.gov. The data base should
expedite the rate at which information is available to
consumers. You can go online to file a complaint.
The Commission has 5 days to review the complaint
and send it to the product manufacturer. The
manufacturer then has 10 days to respond. After the
10 days both the complaint and any response will be
posted online.
You can also search the database for a particular
product to see if anything has been written about it.
Manufacturers are concerned that they won’t have
enough time to investigate and respond before
complaints are posted online.
Health Care & You
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More than
ever, the laptop leaves the
house when we do. With Wi-Fi
access, it’s a great way to check e-mail, verify
bank account balances, and do some
shopping. Unfortunately, places where Wi-Fi
connections are available, such as hotels,
airports, and coffee shops, are where the scam
artists are, too. They’ll try to trick you into
connecting to their Wi-Fi router and then steal
your personal information. Most people are
unaware it’s happening until it’s too late.
How the scam works You turn on your laptop in a Wi-Fi zone.
Several connection choices appear. The
problem is some of the connection choices
aren’t legitimate. These are called ad hoc, or
peer–to–peer networks set up by a thief with a
laptop and wireless network residing nearby.
If you inadvertently connect to their network,
all your computer keystrokes will pass
directly into their computer. While you’re
happily surfing the Internet, the hacker is
collecting your personal information that can
be used to gain access to your bank accounts
and credit card numbers.
How can you be sure you connect to a
legitimate wi-fi zone?
Sometimes it’s difficult to tell, especially
when the scammers model their ad hoc or
peer-to-peer network to look exactly like a
legitimate one. First, look at your connection
page because every network connection
includes a name and a description. If it’s an
ad hoc network, it will be called a “computer
-to-computer” network and display an icon
of several computers connected together. Do
not connect to this.
A legitimate wireless network is simply
called a “wireless network.” It will display
an icon of just one connected computer. This
is the legitimate connection.
If you’re not sure the Wi-Fi network is
legitimate, don’t connect. Also, be sure to set
up your computer so it doesn’t automatically
connect to a wireless network but allows you
to choose your connection. Always be alert
when you’re in a Wi-Fi zone and be sure to
connect to a legitimate Wi-Fi service
provider. Keeping your personal information
“personal” depends on it.
Source: California Dept. of Consumer Affairs,
Consumer Connection, Spring 2011, v. 7, no. 1, p. 23.
WATCH OUT FOR
WI-FI THIEVES
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The Risk-based Pricing Rule requires lenders to send consumers the credit score it used to arrive at its decision. A recent rule benefiting borrowers comes from the Federal Reserve and Federal Trade Commission. Now, consumers must get an explanation when they don't receive the best interest rate or are turned down on a student loan, automobile loan or credit card application. This new regulation requires lenders to send the applicant a free copy of the credit score it used to arrive at its decision. The new Consumer Financial Protection Bureau will enforce these new rules and the ruling only applies to lenders. The lender's disclosure notice must provide the credit score and the factors that pulled down the credit score and where the score ranks nationally. The notice must also give the major factors that decreased the credit score such as late payments or maxing out credit cards. It will also explain how to get a free copy of your credit report. Note: If a utility, telephone company, or insurance agency has a special scoring system, it does not have to provide a free credit score. Also, if a borrower received the best terms and lowest rates, they may not receive a free score. http://www.ftc.gov/opa/2011/07/riskbased.shtm
Most people know there are three big credit reporting agencies (Equifax, Experian, and TransUnion) that collect information on how consumers pay their bills. Well now there is a new player in the marketplace. A company call CoreLogic has started offering a new type of credit file that includes more information than that provided by traditional credit reports. The new file includes missed rental payments that have gone to collection, evictions, child support judgments, property tax liens, missed homeowner association dues, utility bill payments, and applications for payday loans, along with your repayment history. The “CoreScore” credit reports were created for mortgage and home equity lenders, but they may eventually be developed for other types of credit as well. While the new reports should help consumers with thin credit reports, they will probably reveal some black marks for other consumers. CoreLogic is subject to the Fair Credit Reporting Act, just like the traditional credit reporting agencies. Within a year, a copy of the new CoreScore report will be available free annually at:www.AnnualCreditReport.com. Until then you can call 1-877-532-8778 to obtain a copy. It is always a good idea to request and review your credit report annually.
Risk-based
Pricing Rule
New Type of
Credit File
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Better for banks
Merchants may pass additional
cost to consumers
Step 1:
Gather
Information:
Description
Advantages
Disadvantages
Step 2:
Compare &
Rank Options
Better for merchants
Merchant may pass savings to
consumers
Choice #1
Pay with Cash
Choice #2
Pay with Debit or Pre-loaded
Payment Card
Step 3:
Choose
Use cash to pay for small money
transactions:
May be able to get a cash discount
from the merchant
Merchant doesn’t have to pay bank
21¢ / transaction
Have to make sure you have cash be-
fore making purchase
Use debit card to pay for small money
transactions:
Convenient
Don’t have to worry about having enough
cash
Merchant has to pay bank 21¢ / transac-
tion
Merchant may pass additional cost onto
consumers
There is a dilemma that requires your thoughtful consideration. Here’s the
situation. One aspect of the Dodd-Frank Wall Street Reform and Consumer Protection act
was supposed to reduce merchants’ costs for accepting debit cards. Unfortunately, for
some merchants it has actually increased their costs. Credit card companies used to give
merchants discounts on debit-card fees they paid on small transactions, like those under
$10. However, when the Dodd-Frank Act placed a cap on fees the banking industry could
charge, they responded by eliminating the discount to merchants. This hurts merchants
who make a living from small money transactions, like coffee shops, vending machines,
and video kiosks. This then hurts consumers when merchants increase prices to cove the
additional costs. The following is an example of how your choice might work:
It’s up to you to decide, but this might be an opportunity to send a message to
Wall Street.
Choice-Maker Tool
Ca$h vs. Debit
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Consumer Expenditures
Some people find it helpful, or at least interesting, to see how other people spend their money.
The chart below shows the average annual expenditures of all consumer units nationally in
2010. For a table with annual expenditures in western metropolitan areas go to www.bls.gov/
ro3/cetablewest.pdf.
The National Foundation for Credit
Counseling recently launched a financial
resource tool for consumers called
MyMoneyCheckUp. It is designed to provide
an assessment of a consumer’s overall
financial health and behavior. The tool
provides customized feedback to users,
allowing individuals and families to monitor
and assess their financial lives and adjust
their behaviors in order to maximize their
economic empowerment.
After answering a series of topic-specific
questions, a personalized assessment of the
individual’s overall financial health and
associated behaviors is generated. The
MyMoneyCheckUp Tool
34.40%
16.00%12.70%
11.20%
7.00%
6.60%
6.20%
3.50% 3.40%
Spending Categories - 2010
Housing
Transportation
Food
Personal insurance & pensions
All other
Healthcare
Entertainment
Apparel & services
Cash contributions
analysis suggests changes that the consumer is
encouraged to implement in order to become
more financially independent. Traditional red,
yellow, and green traffic light colors are used to
signal whether the consumer should continue
on their current money path (green), proceed
with caution (yellow), or stop and make a
change (red). Individuals can also complete an
optional budget to further help them assess
their financial health.
The tool is available for free to any consumer at
www.NFCC.org or
www.MyMoneyCheckUP.org.
Source: NFCC Press Release, October 4, 2011
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Government Programs Kept People
Above the Poverty Line in 2010 Six temporary federal initiatives enacted in 2009 and 2010 to bolster the economy by
lifting consumers’ incomes and purchases kept nearly 7 million Americans out of
poverty in 2010, under an alternative measure of poverty that takes into account the
impact of government benefit programs and taxes. These initiatives — three new or
expanded tax credits, two enhancements of unemployment insurance, and an expansion
of benefits through the Supplemental Nutrition Assistance Program (SNAP, formerly
called food stamps) — were part of the 2009 Recovery Act. Congress subsequently
extended or expanded some of them.
To view the complete
report go to:
www.cbpp.org/cms/
index.cfm?
fa=view&id=3610
Gift Card Refunds If you have a gift card with a balance of less than $10 you can
request a cash refund from the merchant. But the California
Department of Consumer Affairs explains that you might
have to tell the cashier that it is the law because many
retailers are unaware. Dazzle them with your legal acumen by
citing the code—California Civil Code section 1749.5(b)(2).
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The University of California prohibits discrimination or harassment of any person on the basis of race, color, national origin, relig-ion, sex, gender identity, pregnancy (including childbirth, and medical conditions related to pregnancy or childbirth), physical or mental disability, medical condition (cancer-related or genetic characteristics), ancestry, marital status, age, sexual orientation, citizenship, or service in the uniformed services (as defined by the Uniformed Services Employment and Reemployment Rights Act of 1994: service in the uniformed services includes membership, application for membership, performance of service, application for service, or obligation for service in the uniformed services) in any of its programs or activities.
University policy also prohibits reprisal or retaliation against any person in any of its programs or activities for making a complaint of discrimination or sexual harassment or for using or participating in the investigation or resolution process of any such complaint.
Today’s Consumer is written primarily for the staff of UC Cooperative Extension. It is now available online. Send com-
ments and requests to me at: Cooperative Extension, University of California, Riverside, CA 92521; 951-827-5241.
Karen P. Varcoe, Connie Costello
Consumer Economics Management Specialist Program Representative
Avoiding Bank Fees You may have experienced or been notified of increases in various bank fees and wondered what you could do. Here are some suggestions from the California Department of Consumer Affairs. In order to minimize or prevent getting charged bank fees, consumer advocates suggest the following:
Read your monthly bank statement and challenge inappropriate charges. Make the bank prove these fees are in your contract.
Avoid using “courtesy overdraft protection” services. Instead, use traditional overdraft protection from a line of credit or your savings account.
Shop around and compare bank services in order to find one you feel is offering quality services with appropriate fees.
Be sure to read the contract and understand how bank fees work. Don’t take the word of a bank representative.
Let the bank manager know you are unhappy with the changes. If enough customers complain or change financial institutions, the bank may consider lowering fees.
Source: California Dept. of Consumer Affairs, Consumer Connection, Spring 2011, v. 7, no. 1, p. 23.